A Bear Bites the Financial Sector

A big investor has made a massive bet against the financial sector – does he know something you don't?

During Tuesday's session a major investor, who presumably owns a big position in bank stocks, bought a huge number of puts on the Financial Select Sector SPDR (ticker: XLF), inciting a bearish trading frenzy that has continued into the current session.

This unknown (at least to us) investor bought about 100,000 puts that expire April and will increase if the fund drops below $16. The...